Market Overview for IQ/Tether (IQUSDT) – 24-Hour Analysis

• Price action shows a volatile 24-hour range between $0.002344 and $0.002422 with a net positive close.
• Momentum indicators suggest modest bullish momentum, with RSI hovering near neutral levels.
• Volume spiked notably around the 07:15–08:00 ET window, correlating with a sharp price increase.
• Price tested and retested key support at $0.002350–0.002355, with a bullish breakout attempt later in the session.
• A Bullish Engulfing pattern emerged during the early hours of the session, signaling a potential reversal.

IQUSDT opened at $0.002346 on 2025-10-17 at 12:00 ET, reached a high of $0.002422, dipped to a low of $0.002344, and closed at $0.002397 on 2025-10-18 at 12:00 ET. Total volume for the 24-hour window was 110,455,100 contracts, with total turnover amounting to ~$263,100 USD.

Price action over the past 24 hours showed a pronounced upward bias after a consolidation phase in the early morning. A Bullish Engulfing pattern formed between 07:15–07:30 ET, followed by a sharp rise in volume and price. The formation of a small bearish Doji late in the session at 12:00 ET suggests short-term indecision. Key support levels at $0.002350–0.002355 held multiple times, while the resistance at $0.002375–0.002380 was tested and eventually broken.

The 20-period and 50-period moving averages on the 15-minute chart indicate that price is currently above both, suggesting short-term bullish bias. While no major crossovers occurred in the last 24 hours, the 20-period MA is approaching the 50-period MA, a potential early signal for a bullish crossover. On the daily chart, the 50, 100, and 200-period MAs remain in a broad convergence, with price trending near the 50-period MA, signaling a potential support level in the near term.

MACD remained positive for most of the session, with a bullish divergence forming between the histogram and price during the afternoon hours. RSI fluctuated between 50–60, indicating neutral to mildly overbought territory at the peak of the rally. Price spent more time above the upper Bollinger Band during the early morning, indicating increased volatility and strong bullish sentiment. The narrowing of bands later in the session suggests a potential volatility contraction, possibly leading to a breakout in the near term.

Volume and turnover spiked significantly during the early morning hours (07:15–08:00 ET), coinciding with a sharp price increase from $0.002400 to $0.002422. Notably, this period saw the highest single-candle volume of 5,867,449 contracts, reinforcing the strength of the bullish move. However, in the final hour, volume dropped, and the formation of a Doji suggests buying exhaustion or a technical pause.

Fibonacci retracement levels applied to the key 15-minute swing (from $0.002350 to $0.002422) show that price pulled back to the 61.8% level at $0.002385 before stabilizing. This level appears to have acted as immediate support, confirming its importance in near-term trading. On the daily chart, the 38.2% retracement level at $0.002378 coincided with a consolidation phase and may offer potential support in the next 24 hours.

Looking ahead, the next 24 hours will likely see a test of key resistance at $0.002406 and retesting of support at $0.002385. A break above $0.002422 could signal a stronger bullish phase, while a failure to hold $0.002385 may lead to a retest of the $0.002350 level. Investors should monitor volume behavior and RSI divergence for early signs of exhaustion or continuation.

Backtest Hypothesis

The Bullish Engulfing pattern observed at 07:15–07:30 ET presents a valid setup for a backtest based on the outlined strategy. Using the IQ/USDT pair (Option B), the signal appeared on a 15-minute chart, with open and close prices at $0.002400 and $0.002410, respectively. The next session (07:30–07:45 ET) saw a bullish confirmation, consistent with the pattern’s validity. A 3-day exit rule would close the position at $0.002402, resulting in a mild profit or breakeven outcome, depending on slippage and fees.

For a backtest from 2022-01-01 to 2025-10-18, applying this strategy to daily and 15-minute IQ/USDT data may reveal entry frequency, average returns, and risk-reward characteristics. A stop-loss at 0.75% below entry and a take-profit at 2.5% above could refine the strategy.